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This article is complaining about the dearth of small companies and blames... big companies and R&D, ignoring that the biggest issue for most companies is the i
by vxNsr 8y ago
This article is complaining about the dearth of small companies and blames... big companies and R&D, ignoring that the biggest issue for most companies is the increased regulation requirements that make it uneconomical to be publicly traded until you're so big that you need to follow most of those regulations for internal purposes anyway.
- yborg 8y agoThis make no sense. The regulatory threshold under Dodd-Frank is $75M in annual revenue. So it should be no harder now than it was 20 years ago for smaller companies to go public. And the SEC is changing this to $100M I think, so we should see a pop in public filings if there is some pent-up demand in midcap companies going public but for muh paperwork.
- vxNsr 8y agoIt's not really just Dodd-Frank that is the cause of this, it's also the SEC slowly tightening the screws for the last 15 years since the .com bubble. Nobody wants another bubble but instead of trying to get at the root cause they've just pushed it out of the public eye, now a bunch of PE investors are gonna lose money once it pops.